AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 855
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....have been deducted as TDS from the compensation assessed by respondent No. 3 on account of damage caused to their respective houses due to the construction of the nearby tunnel, as income tax, details of which have been given in the statement along with interest at the rate of 18% per annum. 02. The brief facts giving rise to this petition are that the National Highway Authority of India started construction of four laning of National Highway in District Ramban. During the construction, some structures in the surrounding area were damaged due to blasting including the structures of the petitioners. The assessment of the damaged structures was conducted by the PWD department and the assessed compensation was paid by the collectorate to th....
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....ed that 10% has been deducted as income tax on the amount of compensation received by the petitioners. However, in reply to this, it is stated that TDS (Tax Deducted at Source) payments are not made physically to the Income Tax Department, but instead ought to be made online through the Department's Tax Payment Portal. It is further stated that TDS returns are also required to be filed by the Deductor as per prescribe timelines. In this present case, it is submitted that respondent No. 3 has deposited the TDS with the Treasury and apparently, no Form 16-A has been issued to the petitioners by the Collector Land Acquisition, Ramban (respondent No.3 herein). It is not clear whether the deducted tax was subsequently uploaded to the Department ....
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....in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon: Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to a resident during the financial year does not exceed [five lakh] rupees: Provided further that no deduction shall be made under this section where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013). Explanation.-For ....
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....ntion of the respondents is that TDS has been deducted under section 194 LA of the Income Tax Act, 1961 but as per Form 26AS, it has been shown to be deducted under section 194 C. Further section 194 LA states that there has to be compulsory acquisition of immovable property whereas in the instant case, the petitioners continued to remain the owners of the property. The payment received was only in the nature of damages/compensation for injury to the properties, without any transfer of rights, title or interest in the immovable property. The very foundation for applicability of Section 194 LA is the existence of a transfer. Accordingly, in absence of a transfer of property by way of compulsory acquisition, Section 194 LA has no application.....
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....or that year, he shall be entitled to a refund of the excess. Further, Section 239 stipulates that every claim for refund must be made in the prescribed manner within one year from the last day of the relevant assessment year. 14. It is also noticed that Instruction No. 13/2006, dated 22.12.2006, further prescribes the procedure for dealing with applications for condonation of delay in filing returns and claiming refunds. The Commissioners of Income-Tax (CsIT) is empowered to accept or reject applications under Section 119(2)(b) for condonation of delay in filing returns involving refund claims up to Rs.10,00,000/-. The instruction further permits filing such applications within six years from the end of the relevant assessment year. ....